- The USGS reports that powerful earthquakes, registering with a magnitude around 8.0, have hit an area of the Indian Ocean around 65 miles southwest of Bengkulu, Indonesia, leading authorities to issue tsunami warnings. Full article here.
- President Vladimir Putin has dissolved the Russian government, giving himself the chance to appoint a new prime minister in advance of parliamentary elections scheduled to be held on December 2. Putin is widely believed to be taking this opportunity to signal his choice of a successor to his presidency. Full article here.
- And for dessert, we have a choice of Global Credit Crunch or a Chinese Inflation Soufflé. Any takers?
As central banks prepare to cut interest rates to relieve a global credit crunch, they are being stalked by the threat of inflation.
Wheat prices rose to record highs on global markets today and oil prices rose to near-record levels.
And as pork prices soar, China posted its highest inflation figures in more than a decade.
Recession has been the big fear as the fallout from defaulting US mortgages drives a global credit crunch and threatens to undermine the world’s largest economy.
But the question now is which is the bigger threat – the credit crunch or soaring prices for key commodities around the world?
Full article here. Yes, I know, Mr. Bernanke; many of our diners tell us that it is simply impossible to choose between the two.